Signs That Bank of America Is Getting Back on Track?
Is Bank of America getting its groove back?
Brian Moynihan, president and CEO of the bank, met yesterday with Second Curve Capital’s Tom Brown, and Brown reports that Moynihan is making progress turning around the megabank.
Brown said on Bloomberg this morning that Moynihan told him the bank will realize billions of dollars in gains from various initiatives over the next few years. Specifically, BofA expects $1 billion of P&L per-quarter improvement in capital markets; the banks expects $1 billion of unusually high mortgage servicing costs will soon go away; and the bank expects to take out $1 billion of general expense reductions over each of the next few years.
Moynihan also reportedly said that the bank will run off $20 billion per year of an $80 billion troubled portfolio that has been segmented by the bank, and that runoff will leave the bank with a more profitable overall loan portfolio.
Brown said he thinks BofA still needs work on its retail banking business, but he is more confident in the bank’s longer-term growth potential after meeting with Moynihan yesterday.
Is Bank of America getting its groove back?
Brian Moynihan, president and CEO of the bank, met yesterday with Second Curve Capital’s Tom Brown, and Brown reports that Moynihan is making progress turning around the megabank.
Brown said on Bloomberg this morning that Moynihan told him the bank will realize billions of dollars in gains from various initiatives over the next few years. Specifically, BofA expects $1 billion of P&L per-quarter improvement in capital markets; the banks expects $1 billion of unusually high mortgage servicing costs will soon go away; and the bank expects to take out $1 billion of general expense reductions over each of the next few years.
Moynihan also reportedly said that the bank will run off $20 billion per year of an $80 billion troubled portfolio that has been segmented by the bank, and that runoff will leave the bank with a more profitable overall loan portfolio.
Brown said he thinks BofA still needs work on its retail banking business, but he is more confident in the bank’s longer-term growth potential after meeting with Moynihan yesterday.
